WORRIED ABOUT THE TAX ON INTERNET PURCHASES?
QI have ordered a lot of Christmas presents online to cash in on cheap sterling. But I’m worried about the tax implications. Is it OK to buy in from Britain, for example, as it’s still in the EU? Can these presents be seized or opened when going through the post?
AIn general, most goods bought from another EU member state will not be liable for import charges. However, alcohol or tobacco products are liable to tax and duty on arrival here, whether they originate inside or outside the EU. Many people are being stung by getting wrong-footed with this ruling.
For example, a case of wine for sale online at €60 might look like a great deal.
However, if the price is that low, tax and duty have probably not been paid and Revenue may seize the wine on arrival. You are then liable to pay the tax and duty.
‘Excise duty and VAT on an average case of 12 bottles of wine originating in another EU country will add more than €60 bringing the price you actually pay to over €120,’ a spokeswoman for the Revenue Commissioners said.
If you order something from a non-EU member state, it is liable to tax and duty on arrival here. If the value of your non-EU purchases is more than €22, you will have to pay VAT on the full item value (not just the value above €22). If the value of the goods is over €150, you may also have to pay customs duty, depending on the type of goods, and the country of origin.
Customs duty is charged on the full value of the goods plus the cost of postage, packing and insurance. Information on rates of duty can be obtained by accessing TARIC, the online EU customs database.
If someone sends you a gift from outside the EU, and its value is under €45, there is a relief from payment of customs duty, but only if the gift is of an occasional nature sent from one private individual to another.
Be wary of websites that offer to undervalue your goods to avoid these import duties. This is illegal and as the importer, you are responsible for ensuring that all duties and taxes are paid.
Some websites may also promise delivery from within the EU, to eliminate any import charges, but are in fact shipping their products from outside the EU. Where this is the case, you are liable for all tax and duty.
In general, there is no relief from customs duty, VAT, or excise duty for postal importation of tobacco, tobacco products, alcohol products, perfumes, or toilet waters, irrespective of their value.
Revenue officers are present in postal depots nationwide and will seize goods that appear suspicious. Last year they applied charges to more than 70,0000 parcels, adding an average €33 in tax and duty per parcel.
QWhich is the cheapest stockbroking firm in Ireland?
ADutch broker Degiro claims to be the cheapest execution-only trader in Ireland. You won’t get any advice or hand-holding about what you buy, but the costs are pretty low. Degiro charges a fee of €2 + 0.04% for trades on the Irish Stock Exchange. The cost of buying €5,000 worth of Bank of Ireland shares would be €4, for example.
This compares with an average price of around €38.50 for a similar transaction with other brokers, according to Degiro.
Buying €5,000 worth of US-quoted stocks such as Alibaba would cost 72cent, compared with an average price of €39.50 elsewhere, the broker claims. However, there is a surcharge of €10 plus 0.1% per order for email and telephone orders.
Degiro is regulated by Dutch financial authorities and processes €30bn worth of transactions per year. It expects to have €3bn in assets under administration by the end of 2016.
QI use my car for business and private purposes. How do I work out how much costs I can claim as business expenses?
AThere are two separate tax claims: one for the annual running expenses (ongoing expenses), eg petrol, tax, insurance, repairs etc, and the other for the capital cost of the car as a fixed asset. How much you claim for each is based on the percentage business use of the car. For example: Annual running costs: €5,000 Business Use: 75%
Taxable expense claim: €5,000 x 75% = €3,750.